PAN stands for Permanent Account Number, and it is a ‘must-have’ document in India, especially if you are earning a salary and need to pay taxes. Most of the people avail it for filing Income Tax Returns (ITRs).
Other than this purpose, it is also considered as a proof of identity. If you want to know about it, steps to apply and its other uses, then this article will help you. Read on!
What is PAN Card in India?
What is PAN Card? PAN Card is a proof of identity and a key financial document issued by the Income Tax Department of India. It is done with a motive to recognize multiple types of taxpayers in India. A PAN Card could be allocated to an individual, firm, company, society, trust and HUF, among others.
The PAN Card is valid in India for a lifetime and is not affected by any change in your address.
How to apply for a PAN Card?
With everything going online, even the application of PAN Card is now possible online. You can go for the PAN Card application without hassles by undertaking any of the two websites as discussed below:
It is also possible to apply for a new PAN Card or go for any changes, corrections and edits offline at any of your district-level PAN agencies. If you lose your PAN Card, then it is also possible to request for a duplicate PAN Card or reprint one.
For applying for a new PAN Card, Indian individuals, along with companies, local bodies, trusts, firms and more can fill Form 49A. Other entities need to fill Form 49AA. Once you have filled these forms online or offline, you can submit the documents required for PAN Card to Income Tax PAN Services Unit.
The documents that you need to submit as an individual include two recently clicked passport sized photographs, proof of identity and proof of address.
Once you submit the form, along with the documents, your application will be processed. Once approved, your PAN Card will be dispatched to your proof of address in 14-15 days.
Nowadays, you can also digitally sign your documents and get a soft copy of the PAN Card in 2-3 days. In this case, the physical PAN Card won’t be sent to you. But, the authenticity of the soft copy of the PAN will be as much as a physical card.
What are the uses of having a PAN Card in India?
Here are the benefits of having a PAN Card that you can enjoy, such as:
- You need to quote PAN details while paying direct taxes
- While paying income tax, you will need to mention your PAN details
- It is vital to quote PAN details while registering a business
- It is a must if you are depositing an amount of Rs.50,000 and more into anyone’s bank account
- You will also need to quote PAN if you want to purchase jewelry in excess of Rs.5 lakh
- It is a valid identity proof
- It is the best way to keep track of your tax – else you will need to pay it many times since you can’t get your tax payments revised
- You can use PAN details to open a bank account, avail loans, open a Demat account, get a telephone connection, LPG, electricity and more
Since you are aware of the basics of PAN, you can go ahead and start applying for it online. Once done, you will be able to access many benefits. Get started by browsing the NSDL website right away!